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Lee Hyo-jin

Korea Times Finance Reporter

Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.

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Economy

Expected BOK rate hike prompts concern over rising interest burdens on households, firms

Expectations of imminent interest rate hikes by the Bank of Korea (BOK) are adding to pressure on households and businesses already struggling with rising borrowing costs, analysts said Sunday. Lending rates at major banks have continued to climb as BOK Gov. Shin Hyun-song struck a hawkish tone following a Monetary Policy Board meeting on May 28, reinforcing market expectations that the central bank could begin raising rates as early as July. According to banking industry data, fixed-rate mortgage loans offered by the country's five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — carried interest rates ranging from 4.39 percent to 7.33 percent as of Friday. The upper end of the range was up 0.33 percentage point from a month earlier, when rates stood between 4.4 percent and 7 percent. It marked the first time since October 2022 that the highest fixed mortgage rate among the five major lenders exceeded 7.3 percent. Personal credit loan rates have also moved higher. As of Friday, interest rates on personal credit loans for top-tier borrowers with one-year maturities ra

Jun 7, 2026By Lee Hyo-jin
Expected BOK rate hike prompts concern over rising interest burdens on households, firms
Cryptocurrency

Banks, fintech firms forge alliances for won-based stablecoins

Major financial institutions and fintech firms are exploring partnerships to gain an early foothold in the emerging stablecoin market ahead of the possible introduction of won-pegged stablecoins, according to industry officials Thursday. Earlier this week, officials from KB Financial Group, Shinhan Financial Group, BNK Financial Group, Industrial Bank of Korea, Toss and iM Bank held a closed-door meeting Monday to discuss developments in digital asset regulations and strategies for responding to the emerging stablecoin market. During the meeting, participants exchanged views on regulatory changes, the potential introduction of won-backed stablecoins and possible areas of cooperation. KB Financial is said to be considering entering the won-backed stablecoin market in partnership with fintech platform Toss. Under the arrangement being discussed, KB Kookmin Bank would issue the stablecoin while Toss would oversee distribution. Cryptocurrency exchange Bithumb, which currently maintains a bank account partnership with KB Kookmin Bank, is also viewed as a potential partner. In May, Hana Financi

Jun 5, 2026By Lee Hyo-jin
Banks, fintech firms forge alliances for won-based stablecoins
Politics

Ex-Minister Cho Kuk resigns as party leader after failed parliamentary comeback

Cho Kuk, leader of the minor liberal Rebuilding Korea Party (RKP), failed in his bid to return to the National Assembly in a by-election held alongside Wednesday's local elections, dealing a heavy blow to his political career. According to the National Election Commission Thursday, main opposition People Power Party (PPP) candidate Yoo Ui-dong won the by-election for the Pyeongtaek-B constituency in Gyeonggi Province with 34.83 percent of the vote. Ruling Democratic Party of Korea (DPK) candidate Kim Yong-nam came in second with 28.77 percent, while Cho came third with 27.24 percent. Cho conceded defeat at his campaign office around 3 a.m. after Yoo's victory became certain. "The top priority of this election was to realize a 'zero PPP' outcome. While meaningful progress was made nationwide, we failed to fulfill that mandate in Pyeongtaek. The responsibility lies entirely with me," Cho told reporters. Later that day, he announced his resignation as party leader, saying he would take responsibility for the election defeat. "I may be stepping aside, but I hope our party members will continue

Jun 4, 2026By Lee Hyo-jin
Ex-Minister Cho Kuk resigns as party leader after failed parliamentary comeback
Economy

Will Korea finally win MSCI developed market status?

Korea's chances of joining Morgan Stanley Capital International's (MSCI) Developed Markets Index are back in focus as the benchmark KOSPI rallies toward the 9,000-point milestone, analysts said Wednesday. MSCI is scheduled to release the results of its 2026 Global Market Accessibility Review on June 18, followed by the results of its Annual Market Classification Review on June 23. Korea is seeking placement on MSCI's watch list in this year's classification review, a prerequisite for eventual reclassification as a developed market. Under MSCI's framework, markets typically remain on the watch list for at least one year before becoming eligible for an upgrade. Government officials hope a watch list designation this year will pave the way for Korea's reclassification as a developed market in 2027. The upcoming review is drawing particular attention as the Korean government has stepped up efforts to address long-standing issues that have repeatedly kept the country from being reclassified as a developed market. In its 2025 review, MSCI retained Korea in its "emerging market" category, citing

Jun 4, 2026By Lee Hyo-jin
Will Korea finally win MSCI developed market status?
Economy

KOSPI rally, chip bonuses fuel luxury spending

Park, an office worker in his 50s living in Seoul's Dongjak District, purchased a Tiffany bracelet worth more than 9 million won ($5,900) for his wife at a department store in May after cashing in gains from stock investments. "I sold part of my holdings in exchange-traded funds tracking the KOSPI and also took profits from Samsung Electronics shares," he said. "My wife was always concerned about me investing in stocks. But with the market performing well these days, she has become more supportive." Park is among a growing number of consumers capitalizing on the KOSPI rally, helping drive strong sales at department stores. According to industry data, Wednesday, the country's three major department store operators posted record first-quarter earnings this year. Lotte Department Store reported an operating profit of 191.2 billion won in the January-March period, up 47.1 percent from a year earlier. Shinsegae Department Store posted an operating profit of 141 billion won, a 30.7 percent increase on-year. Hyundai Department Store's operating profit rose 39.7 percent to 135.8 billion won. Luxu

Jun 3, 2026By Lee Hyo-jin
KOSPI rally, chip bonuses fuel luxury spending
Economy

KOSPI ends higher after recovering from sharp intraday losses

Korea's benchmark KOSPI recovered from steep intraday losses Tuesday as retail and institutional investors stepped in to offset heavy foreign selling following the market's recent rally. The benchmark index closed at 8,801.49, up 0.15 percent from the previous session, extending its streak of record-high closes to a third consecutive trading day. After rising as high as 8,933.62 shortly after the opening bell, just 66 points shy of the unprecedented 9,000 mark, KOSPI tumbled to the 8,500 level during intraday trading before rebounding late in the session. The volatile session came a day after the benchmark index closed at a record high of 8,788.38. Analysts attributed the sharp intraday swing to profit-taking by foreign investors following recent gains in semiconductor and other artificial intelligence (AI)-related shares. Retail and institutional investors, however, helped cushion the decline by scooping up stocks. According to the Korea Exchange, foreign investors sold a net 6.59 trillion won ($4.34 billion) worth of stocks, weighing on the index. Retail and institutional investors were

Jun 2, 2026By Lee Hyo-jin
KOSPI ends higher after recovering from sharp intraday losses
Economy

Consumer prices hit 26-month high, fueling rate hike expectations

Korea's consumer inflation accelerated to a 26-month high in May, driven by soaring oil prices amid the ongoing conflict in the Middle East, reinforcing market expectations that the Bank of Korea (BOK) could raise the base rate in July, market watchers said Tuesday. Consumer prices, a key gauge of inflation, rose 3.1 percent last month from a year earlier, marking the fastest pace of growth since March 2024, according to data released by the Ministry of Data and Statistics. The increase was largely driven by higher energy costs. Prices of industrial goods rose 4.2 percent from a year earlier, while petroleum product prices jumped 24.2 percent, contributing 0.92 percentage points to overall inflation. This marked the steepest increase since a 35.2 percent surge recorded in 2022, following Russia's invasion of Ukraine. The statistics ministry attributed the rise in consumer prices to a rebound in agricultural, livestock and fisheries product prices, as well as soaring oil costs linked to the conflict in the Middle East. On the same day, central bank officials held a meeting to review inflat

Jun 2, 2026By Lee Hyo-jin
Consumer prices hit 26-month high, fueling rate hike expectations
Economy

Retirees go all in on booming stock market

A 63-year-old retiree surnamed Lee in Seoul says stocks have largely replaced bank deposits in his portfolio. "Since retiring two years ago, I've kept most of my assets in brokerage accounts rather than savings accounts. I mainly invest in semiconductor stocks such as Samsung Electronics and SK hynix, along with shares of major financial groups," he said. Lee said he hopes the gains will help cover living expenses and allow him and his wife to travel abroad more often. Lee is not alone. As Korea's benchmark KOSPI index marches toward the unprecedented 9,000-point mark, a growing number of investors in their 50s and 60s are turning to equities in search of higher returns, industry data showed Monday. Data from Mirae Asset Securities showed that investors in their 50s and 60s accounted for 21.3 percent of the increase in newly opened brokerage accounts since the end of last year. The figure was the second-highest among all age groups, trailing only investors under 20, whose numbers were boosted by a surge in stock accounts opened by parents on behalf of their children. Notably, growth in new

Jun 2, 2026By Lee Hyo-jin
Retirees go all in on booming stock market
Cryptocurrency

Brokerages rush into crypto exchange investments to secure future growth

Local securities firms are ramping up investments in cryptocurrency exchanges as they seek to secure a foothold in the country's emerging digital asset market ahead of the planned introduction of a tokenized securities framework, industry officials said Friday. Korea Investment & Securities announced that it has signed a strategic investment agreement with cryptocurrency exchange Coinone, acquring a roughly 20 percent stake in the platform. The deal will make the brokerage Coinone's third-largest shareholder, following CEO Cha Myung-hoon, who holds a 30.36 percent stake, and Com2uS Holdings with 24.54 percent. The securities firm said its investment in Coinone is intended not merely as an equity acquisition but as a foundation for expanding into new digital finance businesses. "With this partnership, we have taken our first step beyond the boundaries of conventional finance toward blockchain-based digital financial services," Korea Investment & Securities CEO Kim Sung-hwan said. "We seek to position ourselves as a leading player in the global digital asset market through innovative token

May 29, 2026By Lee Hyo-jin
Brokerages rush into crypto exchange investments to secure future growth
Economy

Foreign home buying in Seoul drops sharply after land permit rules

Home purchases by foreign nationals in Seoul and surrounding areas have dropped sharply after the government designated the regions as land transaction permit zones for non-Korean buyers last August, government data showed Friday. This suggests that tighter regulations may have curbed speculative demand amid controversy over claims that overseas buyers, particularly Chinese nationals, are fueling demand for luxury housing in upscale neighborhoods. According to data released by the Ministry of Land, Infrastructure and Transport, housing transactions involving foreign buyers in Seoul and surrounding areas between September 2025 and April 2026 declined by 28 percent to 3,304 from 4,617 a year earlier. The decline was most evident in Seoul, where home purchases by foreign nationals fell 44 percent to 545 from 968. Transactions also decreased in Gyeonggi Province, down 23 percent to 2,205 from 2,857, and in Incheon, down 30 percent to 554 from 792. In the capital, the drop was particularly pronounced in affluent districts such as Gangnam, Seocho, Songpa and Yongsan districts, where purchases

May 29, 2026By Lee Hyo-jin
Foreign home buying in Seoul drops sharply after land permit rules
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